Home builders across England can today (11 Aug 2021) bid for their share of a Â£ 150million package by offering land for sale as First Homes, the flagship government scheme intended for first-time buyers and key workers.
Home builders are urged to work with the government to deliver first homes across the country in the coming months, with the goal of delivering 1,500 homes by March 2023.
The ministers say First Homes is helping local first-time buyers and key workers access the real estate ladder by offering homes at least 30% off the market price. The same percentage will then be passed on when the property is sold to future first-time buyers. This means that homes will always be sold below market value – with the aim of benefiting local communities and families for generations to come.
Awarding the contract will give home builders the opportunity to engage with local boards and mortgage providers, understand the expected level of customer demand, and learn more about the pre-delivery process. full deployment through planning.
Today’s package follows the initial introduction of First Homes earlier this summer, where local sites were opened in Bolsover, East Midlands, developed by Keepmoat Homes, and Cannock, West Midlands, developed by Vistry Partnerships. . Leeds Building Society recently received the first mortgage application for a First Homes property as more homes hit the market.
Housing Secretary Robert Jenrick said: âIt is great to see the First Homes program grow and I am happy to invite home builders to implement this flagship homebuilding program. across the country. It will support local communities and give local people a greater chance to access the housing ladder and have a place they can call their own. Equally important, builders of homes of all shapes and sizes will now be able to benefit from this program while helping first-time buyers and key workers access the real estate ladder.
Peter Freeman, President of Homes England, said: âThe Early Delivery program is a great opportunity for home builders, housing associations and the wider development industry to get to grips with early homes. We look forward to working with partners to help future homeowners realize their ambitions and become homeowners.
The councils will also be able to prioritize the homes of key workers such as nurses and teachers who were looking to move up the housing ladder while supporting their community through the pandemic.
The tender prompted industry figures to call on policymakers to seriously consider introducing legislation that will require builders to commit to using Modern Construction Methods (MMC) to deliver much of their pipeline under the program. This, they say, will ensure that the low cost homes are very energy efficient and of high quality, thus avoiding the need for expensive retrofit programs down the road.
Joseph Daniels, CEO and founder of modular housing and technology company Etopia Group, and also special advisor to the government on decarbonization of housing and construction under the Construct Zero program supported by BEIS, was among the first to to respond.
He said: âWith more than 1.1 million families on housing council waiting lists and rapid home price inflation preventing many buyers from owning property, it has not. never has it been more necessary to provide affordable, high-quality housing at a sustained rate. As the government begins to launch the bidding process for its First Homes program, policymakers should seriously consider introducing legislation that will require builders to commit to using Modern Construction Methods (MMC) for deliver a good chunk of its pipeline – as happened with the Â£ 11.5 billion Affordable Housing Program. Precision engineering techniques mean that homes made in factories are more energy efficient, of better quality, and can be delivered in half the time of traditional methods.
Home builders can click here for more information on the Tender (ITT), available on Procontract.